Inflation in the Eurozone accelerated in May 2026, as rising prices for services and energy continued to fuel inflationary pressures across the bloc.

According to data released by the statistical office of the Eurostat, annual inflation in the Eurozone rose to 3.2% in May, up from 3.0% in April. A year earlier, in May 2025, the rate stood at 1.9%.

Across the broader European Union, annual inflation increased to 3.3% from 3.2% the previous month. In May 2025, the corresponding figure was 2.2%.

In Greece, inflation reached 4.9% in May, according to Eurostat’s final data, slightly below the preliminary flash estimate published on June 2, which had pointed to a rate of 5%.

The lowest inflation rates in the EU were recorded in Sweden at 1.1%, followed by Denmark and Czech Republic, both at 1.8%.

At the other end of the spectrum, Romania posted the highest inflation rate in the bloc at 9.7%, followed by Bulgaria at 6.3% and Lithuania at 5.1%.

Compared with April 2026, inflation declined in 11 EU member states while rising in 16.

Services made the largest contribution to overall inflation, adding 1.61 percentage points, followed by energy with 0.98 points. Food, alcohol and tobacco contributed 0.6 points, while non-energy industrial goods added 0.23 points.

Energy prices continue to exert a significant influence on the inflation outlook, despite efforts to stabilize markets in the aftermath of recent geopolitical developments in the Middle East.

Focus Shifts to ECB Interest Rate Decisions
The latest data suggest that inflationary pressures in the Eurozone remain strong, as markets closely watch the European Central Bank for signals on interest rates and monetary policy.

ECB officials say that even a peace deal between the United States and Iran would not rule out further rate hikes. While policymakers, including ECB President Christine Lagarde, welcome the prospect of oil flows resuming through the Strait of Hormuz, they believe the economic damage has already been done, keeping inflation risks elevated.